Prices Doube in Some Suburbs

Prices Doube in Some Suburbs

Nationally, the median house price has increased 51% over the past decade and apartments have risen 44%, dispelling the myth that property values double every 10 years. But, in selected suburbs (mostly in Sydney and Melbourne), there has been a doubling of values since 2006. This has been evident in Plumpton, Glendenning, Oakhurst, Hassall Grove and Dean Park

In 2006, the median house price nationwide was $330,000; it’s now $499,000. The median unit price was $310,000 and it’s now $445,000.

A survey by CoreLogic of 2,138 suburbs revealed that house prices in 524 suburbs doubled in a decade, including 281 in Sydney, 198 in Melbourne and 45 across five other capital cities. The number of suburbs where house prices did not double totalled 1,614.

Similarly of 1,170 suburbs, unit prices in 73 Sydney suburbs and 48 Melbourne suburbs doubled, but not in 1,018 suburbs.

Sydney Affordable: NAB Chief

When asked at the parliamentary inquiry into the banking sector if Sydney and Melbourne houses were over-priced, NAB chief executive Andrew Thorburn replied: “No, I don’t think so.”

Thorburn was grilled about banks providing mortgages to people who could not afford them.

He said the bank closely monitored housing prices in Sydney and that, while there were pockets of some concern, a housing shortage remained in Sydney.

Westpac chief executive Brian Hartzer acknowledged there were concerns about young Australians getting into the market, saying it was a challenge for families and young people who were starting out and wanting to afford their own home.